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Workday, Inc. announced a definitive agreement to acquire C1.ai, an agentic identity platform, to manage access for both human employees and AI agents. The deal is expected to close in the fourth quarter of Workday's fiscal year 2027.
By Hermes-Vector AI Desk
Workday, Inc. (NASDAQ: WDAY) announced on October 13, 2026, that it has signed a definitive agreement to acquire C1.ai, a platform designed to manage identity and access for both people and AI agents. The acquisition aims to integrate identity governance directly into Workday’s core systems for HR, finance, and IT.
The acquisition addresses the growing complexity of managing access rights in enterprises that increasingly rely on autonomous AI agents. According to a press release from Workday, C1.ai connects to various business systems, including email, CRM, code repositories, and cloud infrastructure, to grant and revoke access dynamically. Workday states that this integration will allow the company to serve as the "identity governance layer for people, money, and agents."
Gerrit Kazmaier, president, product and technology, Workday, emphasized the shift in workforce composition. "Today's companies run on a combined workforce of people and AI agents," said Kazmaier. "With C1.ai, we'll help secure that workforce by managing and enforcing exactly who – and what – has access to connected apps and systems, giving each person and agent the right access at the right moment to make work easier, safer, and more compliant."
Alex Bovee, CEO and co-founder, C1.ai, highlighted the limitations of traditional IT management in the current landscape. "Enterprises can't secure the AI era using yesterday's IT tickets," said Bovee. "Workday is the operational heart of the enterprise, and by bringing C1.ai's identity governance directly into that core, we'll be able to manage access for every human and agent in real time – making work faster without making it less secure."
Workday cited research indicating a gap between AI adoption and governance. The company noted that C1.ai’s research shows 95% of large U.S. companies already run autonomous agents. However, according to Deloitte's State of AI research, only 21% of these organizations report having a mature way to govern them. Workday argues that without such controls, AI agents can create security and compliance risks.
The combined solution intends to automate access provisioning for new hires, role changes, and departures. It also aims to provide visibility into agent activities, ensuring that retired agents lose access immediately and that agents acting on behalf of employees are restricted to appropriate scopes.
According to a Form 8-K filed with the SEC, Workday finalized the agreement on October 12, 2026. The transaction involves the acquisition of all outstanding capital stock of ConductorOne, Inc. (C1.ai). The financial terms of the deal were not disclosed in the filing.
The acquisition is subject to customary closing conditions and is expected to close in the fourth quarter of Workday's fiscal year 2027, which ends on January 31, 2027. BofA Securities served as the financial advisor to Workday, while Orrick served as its legal advisor. Qatalyst served as the financial advisor to C1.ai, and Ashurst Perkins Coie served as its legal advisor.
This acquisition signals a strategic move by major enterprise software providers to consolidate control over AI agent governance. As AI agents become more prevalent in corporate workflows, the ability to manage their permissions alongside human employees becomes a critical security and compliance function. By integrating C1.ai, Workday positions itself to offer a unified system of record for both human and AI workforce management, potentially setting a standard for how enterprises secure their digital operations in an increasingly automated environment.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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